Pakistan and the European Union have formalized financing agreements amounting to €65 million (approximately $75 million) aimed at advancing global connectivity, the rule of law, the business climate, energy, and environmental sustainability in the country.
The accords were signed by EU Ambassador to Pakistan Rymondas Karoblis and Economic Affairs Division Secretary Muhammad Humayun Karim. The Economic Affairs Division confirmed that the EU’s contribution of €65 million (around Rs20.64 billion) will fund three key programmes under its 2021-2027 Multiannual Indicative Programme in Pakistan.
The first initiative, the Global Gateway Development Facility for Pakistan, is designed to enhance investment management and provide financial support for environmental projects. It also intends to improve the tax system and bolster the government’s long-term fiscal planning to attract more foreign investment.
The second programme targets energy and environmental sustainability in Khyber Pakhtunkhwa (KP). It aims to expand renewable energy usage in rural areas lacking access to the national electricity grid. Additionally, it will offer training to encourage private investment and increase private-sector involvement in KP’s energy sector.
The third initiative focuses on strengthening the rule of law and improving the business environment across Pakistan. It seeks to enhance citizens’ access to police, prosecution, courts, and legal aid services in KP and Balochistan. Furthermore, it will promote alternative dispute resolution and commercial dispute resolution mechanisms in Punjab and Sindh, thereby fostering a better investment climate for European and other companies.
The Economic Affairs Division highlighted that EU development cooperation with Pakistan prioritizes economic growth, climate resilience, human rights, rule of law, and sustainable natural resource management.
At the signing ceremony, Secretary Muhammad Humayun Karim expressed gratitude for the EU’s ongoing support and partnership. He emphasized that these programmes are timely, aligning with Pakistan’s goals of attracting foreign investment, enhancing electricity access in underserved rural KP, and reinforcing the rule of law and commercial dispute resolution systems.
EU Ambassador Rymondas Karoblis underscored that the agreements demonstrate the EU’s commitment to supporting Pakistan’s economic development and investment goals through the Global Gateway initiative. He noted that the energy programme would assist KP authorities in building a more robust and resilient energy sector while promoting sustainable management of natural resources.
Karoblis added that the rule-of-law programme would improve access to justice for citizens in KP and Balochistan and strengthen alternative and commercial dispute resolution mechanisms in Punjab and Sindh. This will be achieved through enhanced cooperation among the judiciary, legal professionals, universities, and the business community.
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